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Commuting costs and labor force retirement

  • Jorge González

    (Universidad de Alicante)

Registered author(s):

    This paper studies whether the increase in home-workplace separation observed among U.S. older male workers in the last decades of the 20th century can partly account for earlier retirement. We first extend a conventional residential location-labor supply model in order to examine potential mechanisms linking commuting and retirement. After showing that, as a consequence of the urban residential equilibrium, it is possible that workers residing further from the workplace retire earlier, PSID data and an instrumental variables approach are combined in order to assess the nature and strength of the relation.

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    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-2008-19.pdf
    File Function: Fisrt version / Primera version, 2008
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    Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2008-19.

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    Length: 40 pages
    Date of creation: Dec 2008
    Date of revision:
    Publication status: Published by Ivie
    Handle: RePEc:ivi:wpasad:2008-19
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    1. White, Michelle J., 1999. "Urban areas with decentralized employment: Theory and empirical work," Handbook of Regional and Urban Economics, in: P. C. Cheshire & E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 3, chapter 36, pages 1375-1412 Elsevier.
    2. Robin L. Lumsdaine & Olivia S. Mitchell, . "New Developments in the Economic Analysis of Retirement," Pension Research Council Working Papers 98-8, Wharton School Pension Research Council, University of Pennsylvania.
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    4. Crampton, Graham R., 1999. "Urban labour markets," Handbook of Regional and Urban Economics, in: P. C. Cheshire & E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 3, chapter 39, pages 1499-1557 Elsevier.
    5. Bridgitte C. Madrian, 1994. "The Effect of Health Insurance on Retirement," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(1), pages 181-152.
    6. Eric French, 2005. "The Effects of Health, Wealth, and Wages on Labour Supply and Retirement Behaviour," Review of Economic Studies, Oxford University Press, vol. 72(2), pages 395-427.
    7. Blau, David M. & Goodstein, Ryan, 2007. "What Explains Trends in Labor Force Participation of Older Men in the United States?," IZA Discussion Papers 2991, Institute for the Study of Labor (IZA).
    8. Edward L. Glaeser & Matthew E. Kahn & Jordan Rappaport, 2000. "Why Do The Poor Live In Cities?," Harvard Institute of Economic Research Working Papers 1891, Harvard - Institute of Economic Research.
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    11. Gabriel, Stuart A. & Rosenthal, Stuart S., 1996. "Commutes, Neighborhood Effects, and Earnings: An Analysis of Racial Discrimination and Compensating Differentials," Journal of Urban Economics, Elsevier, vol. 40(1), pages 61-83, July.
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    14. repec:att:wimass:9430 is not listed on IDEAS
    15. Glaeser, Edward L. & Kahn, Matthew E. & Rappaport, Jordan, 2008. "Why do the poor live in cities The role of public transportation," Journal of Urban Economics, Elsevier, vol. 63(1), pages 1-24, January.
    16. James H. Stock & David A. Wise, 1988. "Pensions, The Option Value of Work, and Retirement," NBER Working Papers 2686, National Bureau of Economic Research, Inc.
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    23. Madden, Janice Fanning, 1980. "Urban Land Use and the Growth in Two-Earner Households," American Economic Review, American Economic Association, vol. 70(2), pages 191-97, May.
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    25. Paul J. Taubman, 1981. "Pensions and Mortality," NBER Working Papers 0811, National Bureau of Economic Research, Inc.
    26. Samuel L. Myers & Chanjin Chung & Lisa Saunders, 2001. "Racial Differences in Transportation Access to Employment in Chicago and Los Angeles, 1980 and 1990," American Economic Review, American Economic Association, vol. 91(2), pages 174-177, May.
    27. Cogan, John F, 1981. "Fixed Costs and Labor Supply," Econometrica, Econometric Society, vol. 49(4), pages 945-63, June.
    28. Simpson, Wayne & van der Veen, Anne, 1992. " The Economics of Commuting and the Urban Labour Market," Journal of Economic Surveys, Wiley Blackwell, vol. 6(1), pages 45-62.
    29. Mitchell, Olivia S & Fields, Gary S, 1984. "The Economics of Retirement Behavior," Journal of Labor Economics, University of Chicago Press, vol. 2(1), pages 84-105, January.
    30. Oi, Walter Y, 1976. "Residential Location and Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages S221-38, August.
    31. Lee A. Lillard & Constantijn W. A. Panis, 1998. "Panel Attrition from the Panel Study of Income Dynamics: Household Income, Marital Status, and Mortality," Journal of Human Resources, University of Wisconsin Press, vol. 33(2), pages 437-457.
    32. John Bound & Michael Schoenbaum & Timothy Waidmann, 1996. "Race Differences in Labor Force Attachment and Disability Status," NBER Working Papers 5536, National Bureau of Economic Research, Inc.
    33. Stucker, James P., 1975. "Transport improvements, commuting costs, and residential location," Journal of Urban Economics, Elsevier, vol. 2(2), pages 123-143, April.
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